To: KINGBULLBEAR who wrote (20484 ) 11/5/1997 4:56:00 AM From: Markus Read Replies (3) | Respond to of 176387
DELL IS GOING DOWN. IS IT A BOXMAKER OR A PANDORA BOX ? HOPE AGAINST HOPE. Using a past price in trying to decide if a stock is a bargain is a disguised form of wishful thinking. An investor who buys on that basis is really hoping that the stock will go back to $100 because it traded for $100 recently. It's equally valid to assume, however, that the current quote of $80 is a realistic price and the stock was once overvalued. Start instead with the company's prospects. What do you know about Dell's business that might change the amount of money the company will make going forward? I know that in the three months ending September 30, Dell's sales grew by 60%. The company picked up market share in the personal computer market. I also know, however, that everyone in the industry is gunning at Dell and trying to implement versions of its build-to-order system. Compaq, Hewlett - Packard (HWP) and even IBM (IBM) are all re-jiggering their distribution systems to cut into the competitive advantage that Dell gets from its marketing approach. Dell's success has drawn new build-to-order competitors out of the woodwork, too. Retailer CompUSA (CPU) has launched its own build-to-order system. Wal-Mart (WMT) recently inked a deal with ACI Micro Systems for build-to-order PCs that will be sold through Wal-Mart Online. VERDICT DELL IS GOING DOWN THE TUBE. ALL THE GOOD NEWS HAS BEEN FACTORED IN THE STOCK PRICE. SO NOW ANY NEWS IS BAD NEWS FOR DELL. I KNOW SHORTS HAVE BEEN LOSING THEIR SHIRTS BADLY ON DELL, PERHAPS MOST PEOPLE WHO SHORT DELL ARE STUPID PEOPLE, BUT THIS TIME THE SHORTS WILL LAUGH. HEY EVEN A BROKEN CLOCK WILL BE RIGHT AT LEAST TWICE A DAY. HOPE YOU HAVE ENOUGH STOMACH TO WATCH DELL GOES DOWN LIKE MUEI, AND IOM, OR BOST. BYE